How do we retain our talent? This has become a question that every organization, across the country, is asking today.
Inclusion at the workplace, i.e., the extent to which each person in an organization feels welcome, respected, supported, and valued as a team member can play a major role in helping answer this. A survey done by BCG of -16,000 employees across 16 countries, including India, showed a clear correlation between inclusiveness, happiness, productivity, and retention.
Happiness leads to retention and better productivity — it was found that workers who report they are unhappy are 4.6 times more likely to indicate they will probably leave their current employer within six months. On the other hand, those who indicate they are happy at work are 1.5 times more likely, compared with those who are unhappy, to give their best. And inclusion is a real driver of happiness. The survey revealed that, of employees who reported they work in an inclusive culture, 81% said they are happy in their jobs—three times more than those who do not feel included. Employees in inclusive cultures feel they can be their authentic selves without hiding their identities at work.
Further, the feeling of inclusiveness is a key element of well-being. The study found that, in an inclusive work environment, employees are comfortable sharing their perspectives freely and believe that their colleagues value their contributions. They exhibit less stress and anxiety and are about twice as likely to have a good friend at work and to say they have a positive work-life balance.
Despite the growing evidence on the need for a focus on inclusion, Indian organizations are not yet sufficiently prioritizing inclusion as part of their core employee value proposition. According to a survey run by Indeed, 77% of Indian employers believed that they need to prioritize Diversity & Inclusion efforts to better the organization’s performance, yet only 21% of organizations have instituted formal D&I practices.
Creating an inclusive work environment is not easy. It is a transformation requiring a company to make a fundamental culture shift, which needs to cascade throughout the organization, affecting the day-to-day experience of every employee. To achieve an inclusive culture, a company must focus on four key success factors.
Setting up inclusive structures
The starting point in an organizations inclusion journey is ensuring that the company’s values and policies are respectful of every employee ‘s individual identity. Structures, such as Employee Resource Groups and mentorship support should be set up for underrepresented employees. Where possible, policies and benefits should be delinked from a “target group (gender, persons with disabilities, etc.) tag.” Policies that may have been developed for a specific group could also improve the value proposition for all employees. For example, many organizations have been commended for extending flexible work models, that were initially launched for women, across the employee base. These structures lay down the initial framework for a broader cultural change throughout the organization.
Institutionalize an inclusive environment
The team environment — where the majority of interactions take place can make or break progress on inclusion efforts. As per a BCG report, in a day, an employee has “1000 daily touchpoints” within an organization, i.e., interactions with stakeholders (colleagues, direct managers, leadership, vendors, clients, etc.), navigating through office infrastructure, attending events, etc. It is not just the benefits and ERGs alone that drive differentiated outcomes, rather it is these 1000 daily touchpoints. A breakdown in these points is a major barrier to inclusion. Negative touch points are costly: employees who experience more negative touch points are 40% less productive and 13 times more likely to quit a job. Negative touch- points could be comments or actions that highlight prejudice and make an individual or group feel isolated or unwelcome, while positive touchpoints could be mechanisms to ensure each meeting, townhall, and corporate interaction is effortlessly inclusive towards all diversity dimensions within the organization (ex: having a sign language interpreter across events)
Making leadership commitment visible across the organizational hierarchy
All leaders the senior, middle and junior management should be noticeably and vocally committed to inclusion. BCG research has shown that employees who see consistent support through all leadership ranks are 25% more likely to feel included than employees in companies where only senior executives, but not direct managers, demonstrate commitment.
Inclusion efforts should be supported with data to measure progress
What gets measured gets changed. Inclusion levels should be tracked through the entire employee life cycle, i.e., in the areas of recruitment, retention, advancement, representation, and pay. This should be done across all levels and departments. Data and tools also make leaders accountable and help them in taking more inclusive personnel decisions as opposed to relying purely on intuition.
Companies all around the world, especially during the Covid-19 pandemic, have made great strides in implementing structural and cultural changes to promote the physical and mental well-being of employees. Now is the time to devote resources and attention to creating an inclusive culture. By creating inclusive workplaces and ensuring that all employees bring in their authentic selves to work every day, organizations can reward themselves with a healthier, happier, and ultimately more productive workforce.
